Murdoch and Speyer Blast Obama

Just got back from the first annual New York Forum hosted in midtown Manhattan, where News Corp.’s Rupert Murdoch, Tishman Speyer’s Jerry Speyer, Hearst Magazine’s Cathleen Black and Alcatel-Lucent’s Philippe Camus discussed corporate reinvention on a panel moderated by CNBC’s Maria Bartiromo.

The group discussed everything from the IPad to climate change to government regulations. When it came to the current administration, Murdoch and Speyer were on fire, criticizing President Obama’s leadership skills and policies. Asked if the U.S. is losing its global footing, Murdoch immediately answered: “Absolutely.”

Speyer lambasted the government on the topic of regulation: “In 2008 to 2009 the government was doing what it should be doing, playing a protective and stimulating role. Now the government is punishing everyone in its sight.”

Murdoch and Speyer dominated the panel discussion, especially Murdoch, who was feisty at times.

From my reporter’s notebook, following is the gist of what the two billionaires had to say:Murdoch on innovation and media: - Innovation has been particularly disruptive to the media business. The media industry needs to: 1) Adapt its business model 2) Get young people reading 3) Learn a lot more about how people want to read “The IPad is fantastic,” said Murdoch. News Corp. will certainly be embracing it through its newspapers, television and films. Within five years, he said, there will be hundreds of millions of IPads and e-reading devices in the world. - No one is getting rich by giving away content for free: “You can’t get something from nothing.”

Speyer and Murdoch on taxes and regulation: - Speyer: “People vote with their feet.” One of the big dangers we’re facing in the U.S. is that people will take their businesses elsewhere if the government over-regulates banks and other industries. - Murdoch: “This has got to change.” The U.S. has a big tax increase coming next year that will discourage growth. It need less government and less taxes. The U.S. is about to have higher taxes than anywhere else in the world, he added. - More Murdoch: At the moment there’s a committee discussing regulations in Washington and its thinking of punishing businesses in a way that has absolutely nothing to do with the financial crisis. - Speyer: Employment in the U.S. is led by small and medium-sized businesses and right now these businesses can’t get a loan.

Speyer and Murdoch on New York City and real estate: - Murdoch: The U.S. may be losing its global footing but New York is still the best city in the world. - Speyer: Statistically, New York is doing better than any other city in America. Commercial and residential real estate are picking up quicker than in other cities. Why? “New York is an incredible place to live,” said Speyer, pointing out that the city stands out when it comes to culture, intellectual talent, academic centers, etc.

Murdoch and Speyer on what they would do if they were President Obama: - Murdoch: “I would establish my authority. And I would certainly seek actively to have more influence in Congress.” - Murdoch: It’s irresponsible of President Obama (“I shouldn’t say corrupt”) to seemingly stand aloof on various important issues while focusing only on a select few. - Murdoch: “I think there can be much better initiatives coming from the government.” The health debate is “a fiction,” will cost a fortune and will not improve the health industry. - Speyer: “If you run a business, you have to be a leader; demonstrate you are in charge. The President is a very smart man; the problem is he hasn’t exercised leadership.” - Speyer: “I don’t believe we’re running efficiently.” Instead of raising taxes, he said he would reduce them and also cut government spending, which has “gotten out of control.”

Speyer and Murdoch on immigration and education: - Speyer: One of the biggest challenges we will face after the recession is human resources. Despite today’s unemployment, we are going to need people. - Murdoch: “We have a crazy immigration system. It’s an absolute scandal and it must be tackled by the administration quickly.” We educate people and afterward we refuse to give brilliant minds a green card; we are losing talent. - Murdoch: “Inner city education is a disgrace” due to three key problems: 1) Teachers’ low pay 2) No merit pay for teachers 3) After three years teachers have permanent jobs for life, aka retirement at 55

Murdoch on the BP oil spill: - “I’m a skeptic on climate change.” - As far as drilling in the Gulf, President Obama could appeal the judge’s recent ruling, but he will not win. - The U.S. should run a pipeline through Canada and save this country money. - It’s alarming that the Chinese are way ahead of us in solar energy. The more we invest in clean technology, the better. Murdoch and Speyer on China: - Murdoch: “China has a very real asset bubble at the moment.” - Speyer: “I don’t think China is going to fall apart.” Its leadership has been extremely smart and strategic on long term growth.

Speyer’s lessons on leadership: - Demonstrate to people who work for you three things: 1) You support them 2) You want them to grow in their positions 3) If you can’t do something yourself, never ask for the impossible

Murdoch’s lessons on leadership: - Set an example through hard work and really help your people do better

Someone from the audience asked the group what they’d trim in government spending and where they’d get the money to pay off the U.S. deficit if taxes were lower. No one gave a direct answer.

The Forum continues tomorrow with other faces.

On that note, on what points do you disagree with these industry titans? What would you ask them in a panel discussion? Post a comment below or shoot me an email and let me know.

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